NEW YORK CITY—New York REIT, Inc., which is engaged in a property liquidation program, has closed on the sale of its 1440 Broadway office building for $520 million.
The New York City-based firm announced in an 8-K SEC filing in November that Los Angeles-based CIM Group Acquisitions, LLC, an unaffiliated third party, had entered into a contract to purchase the 755,679-square-foot, 25-story office building. The property, located on the northeast corner of Broadway and West 40th St., has undergone more than $36 million in building improvements since 2000. NYRT received net proceeds of approximately $192.9 million on the purchase.
New York REIT also reports it has entered into three separate contracts to sell 306 East 61st St., an 81,082-square-foot office building known as the “Interior Design Building;” One Jackson Square, an 8,392-square-foot retail building at 122 Greenwich Ave.; and 350 West 42nd St., a retail condo and parking garage property, in Manhattan to third party buyers for an aggregate amount of $103.1 million.
In the aggregate, the three properties are encumbered by approximately $43.4 million of mortgage debt that New York REIT states will be satisfied in full at the respective closings. The closings on those three properties are expected to occur in early 2018.
In November, Investcorp and Brinkman partnered on the purchase of two New York REIT properties— 29 W. 36th St. and 256 W. 38th St.— in Midtown Manhattan for a combined price of approximately $156 million.
CIM Group and Uber announced earlier this week that CIM acquired Uber's Uptown Station building in Oakland, CA and will complete the redevelopment that is currently underway, transforming the 1929 era former department store property into a 356,000-square-foot, eight-story Class-A creative office building. CIM purchased the property for $180 million, according to a report in the San Francisco Business Times.
Uptown Station will also feature approximately 35,000 square feet of ground floor retail space that will add to the vibrancy of the neighborhood that is attracting new restaurants, bars and boutiques. CIM's completion of the redevelopment program is anticipated for late 2018.
“With immediate access to a BART station at 19th Street, the building's historic character, exceptional 78,000-square-foot floor plates on three floors, ample ceiling heights, interior atrium, and abundant outdoor deck space, Uptown Station is a rare opportunity and a standout among office properties in the Bay Area for a broad array of large creative office tenants,” said Avi Shemesh, co-founder and principal, CIM Group.
Uber purchased the property at 1955 Broadway in 2015 and since then has been in the process of converting the property to an urban office campus. Uptown Station complements CIM's other office holdings in Oakland, which includes a 1.7-million-square-foot portfolio of Class-A buildings, and Jack London Square, a popular dining, entertainment, retail, recreation and office complex located on the Oakland waterfront of San Francisco Bay.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
